As filed with the SEC on August 26, 2005.

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-02273

 

 

TRANSAMERICA INCOME SHARES, INC.

(Exact name of registrant as specified in charter)

 

570 Carillon Parkway, St. Petersburg, Florida

 

33716

(Address of principal executive offices)

 

(Zip code)

 

John K. Carter, Esq.  P.O. Box 9012, Clearwater, Florida  33758-9771

(Name and address of agent for service)

 

Copy to:

 

 

Registrant's telephone number, including area code:

(727) 299-1800

 

 

Date of fiscal year end:

March 31

 

 

 

 

Date of reporting period:

April 1, 2005 – June 30, 2005

 

 

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to Rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 


 

Item 1. Schedule of Investments.

 

The unaudited Schedule of Investments of Registrant as of June 30, 2005 are attached.

 


 

Transamerica Income Shares, Inc.

 

SCHEDULE OF INVESTMENTS

At June 30, 2005

(all amounts except share amounts in thousands)

(unaudited)

 

 

 

Principal

 

Value

 

U.S. GOVERNMENT OBLIGATIONS (8.6%)

 

 

 

 

 

U.S. Treasury Bond

 

 

 

 

 

5.38%, due 02/15/2031 (a)

 

$

1,208

 

$

1,425

 

U.S. Treasury Note

 

 

 

 

 

1.88%, due 12/31/2005 (a)

 

3,000

 

2,977

 

3.75%, due 05/15/2008

 

1,250

 

1,253

 

4.00%, due 04/15/2010

 

4,000

 

4,044

 

4.00%, due 02/15/2015

 

3,000

 

3,011

 

Total U.S. Government Obligations (cost: $12,522)

 

 

 

12,710

 

 

 

 

Principal

 

Value

 

CORPORATE DEBT SECURITIES (86.1%)

 

 

 

 

 

Aerospace (1.9%)

 

 

 

 

 

Boeing Co. (The)

 

 

 

 

 

8.75%, due 08/15/2021

 

2,000

 

2,784

 

Agriculture (1.8%)

 

 

 

 

 

Dole Food Co., Inc.

 

 

 

 

 

8.63%, due 05/01/2009

 

1,000

 

1,065

 

Michael Foods, Inc.

 

 

 

 

 

8.00%, due 11/15/2013

 

1,500

 

1,526

 

Amusement & Recreation Services (1.4%)

 

 

 

 

 

Speedway Motorsports, Inc.

 

 

 

 

 

6.75%, due 06/01/2013

 

2,000

 

2,060

 

Automotive (2.3%)

 

 

 

 

 

DaimlerChrysler NA Holding Corp.

 

 

 

 

 

8.50%, due 01/18/2031

 

2,675

 

3,389

 

Beverages (2.3%)

 

 

 

 

 

Cia Brasileira de Bebidas

 

 

 

 

 

8.75%, due 09/15/2013

 

3,000

 

3,469

 

Business Credit Institutions (3.7%)

 

 

 

 

 

Pemex Finance, Ltd.

 

 

 

 

 

9.03%, due 02/15/2011

 

4,900

 

5,506

 

Chemicals & Allied Products (1.7%)

 

 

 

 

 

Lubrizol Corp.

 

 

 

 

 

5.50%, due 10/01/2014

 

2,500

 

2,578

 

Commercial Banks (2.7%)

 

 

 

 

 

Barclays Bank PLC, Series 1

 

 

 

 

 

6.28%, due 12/15/2034 (b)

 

1,500

 

1,532

 

HSBC Capital Funding LP - 144A

 

 

 

 

 

10.18%, due 12/31/2049 (c)

 

1,500

 

2,400

 

Communication (6.5%)

 

 

 

 

 

Comcast Corp.

 

 

 

 

 

4.95%, due 06/15/2016

 

2,000

 

1,991

 

COX Communications, Inc.

 

 

 

 

 

6.75%, due 03/15/2011

 

1,444

 

1,572

 

Echostar DBS Corp.

 

 

 

 

 

6.38%, due 10/01/2011

 

1,000

 

991

 

News America Holdings

 

 

 

 

 

9.25%, due 02/01/2013 (a)

 

3,985

 

5,037

 

 

1


 

Communications Equipment (0.8%)

 

 

 

 

 

Motorola, Inc.

 

 

 

 

 

4.61%, due 11/16/2007

 

$

1,250

 

$

1,260

 

Department Stores (0.7%)

 

 

 

 

 

JC Penney Co., Inc.

 

 

 

 

 

6.88%, due 10/15/2015

 

1,000

 

1,075

 

Electric Services (10.1%)

 

 

 

 

 

AES Gener SA

 

 

 

 

 

7.50%, due 03/25/2014 (a)

 

3,000

 

3,049

 

Dominion Resources, Inc.

 

 

 

 

 

3.66%, due 11/15/2006

 

3,350

 

3,328

 

DPL, Inc.

 

 

 

 

 

8.25%, due 03/01/2007

 

2,000

 

2,110

 

Duke Energy Corp.

 

 

 

 

 

4.20%, due 10/01/2008

 

3,400

 

3,388

 

FPL Group Capital, Inc.

 

 

 

 

 

4.09%, due 02/16/2007

 

2,000

 

1,999

 

TXU Electric Delivery Co.

 

 

 

 

 

5.00%, due 09/01/2007

 

1,000

 

1,014

 

Food & Kindred Products (1.4%)

 

 

 

 

 

ConAgra Foods, Inc.

 

 

 

 

 

9.75%, due 03/01/2021

 

1,375

 

2,005

 

Food Stores (1.0%)

 

 

 

 

 

Stater Brothers Holdings, Inc.

 

 

 

 

 

8.13%, due 06/15/2012

 

1,500

 

1,462

 

Gas Production & Distribution (0.4%)

 

 

 

 

 

Northwest Pipeline

 

 

 

 

 

9.00%, due 08/01/2022

 

631

 

651

 

Holding & Other Investment Offices (3.4%)

 

 

 

 

 

EOP Operating, LP

 

 

 

 

 

8.38%, due 03/15/2006

 

3,000

 

3,089

 

Raytheon Co.

 

 

 

 

 

3.50%, due 05/15/2006

 

3,700

 

1,890

 

Hotels & Other Lodging Places (2.9%)

 

 

 

 

 

Host Marriott, LP

 

 

 

 

 

7.13%, due 11/01/2013

 

2,000

 

2,085

 

Intrawest Corp.

 

 

 

 

 

7.50%, due 10/15/2013

 

500

 

513

 

Park Place Entertainment Corp.

 

 

 

 

 

7.00%, due 04/15/2013

 

1,500

 

1,665

 

Industrial Machinery & Equipment (1.0%)

 

 

 

 

 

Caterpillar, Inc.

 

 

 

 

 

9.38%, due 03/15/2021

 

1,000

 

1,480

 

Lumber & Wood Products (0.7%)

 

 

 

 

 

Ainsworth Lumber Co., Ltd.

 

 

 

 

 

6.84%, due 10/01/2010 (d)

 

1,000

 

997

 

Metal Mining (1.4%)

 

 

 

 

 

Barrick Gold Finance, Inc.

 

 

 

 

 

7.50%, due 05/01/2007

 

2,000

 

2,115

 

Mortgage Bankers & Brokers (1.7%)

 

 

 

 

 

Countrywide Home Loans, Inc.

 

 

 

 

 

5.50%, due 08/01/2006

 

2,500

 

2,538

 

Motion Pictures (3.9%)

 

 

 

 

 

Time Warner, Inc.

 

 

 

 

 

9.13%, due 01/15/2013

 

4,500

 

5,686

 

 

2


 

Oil & Gas Extraction (7.9%)

 

 

 

 

 

Chesapeake Energy Corp.

 

 

 

 

 

6.88%, due 01/15/2016

 

$

2,500

 

$

2,606

 

Comstock Resources, Inc.

 

 

 

 

 

6.88%, due 03/01/2012

 

2,000

 

2,020

 

El Paso CGP Co.

 

 

 

 

 

7.63%, due 09/01/2008

 

1,000

 

1,023

 

Evergreen Resources, Inc.

 

 

 

 

 

5.88%, due 03/15/2012

 

2,350

 

2,335

 

Husky Oil, Ltd.

 

 

 

 

 

8.90%, due 08/15/2028 (e)

 

1,370

 

1,515

 

Nexen, Inc.

 

 

 

 

 

5.88%, due 03/10/2035

 

1,460

 

1,484

 

Occidental Petroleum Corp.

 

 

 

 

 

10.13%, due 09/15/2009

 

500

 

604

 

Paper & Allied Products (5.2%)

 

 

 

 

 

Domtar, Inc.

 

 

 

 

 

7.88%, due 10/15/2011

 

556

 

588

 

Georgia Pacific Corp.

 

 

 

 

 

7.70%, due 06/15/2015

 

1,000

 

1,140

 

International Paper Co.

 

 

 

 

 

5.50%, due 01/15/2014

 

3,750

 

3,829

 

Westvaco Corp.

 

 

 

 

 

7.95%, due 02/15/2031

 

1,600

 

2,056

 

Petroleum Refining (4.1%)

 

 

 

 

 

Amerada Hess Corp.

 

 

 

 

 

7.13%, due 03/15/2033

 

1,750

 

2,076

 

Enterprise Products Operating, LP, Series B

 

 

 

 

 

5.60%, due 10/15/2014

 

1,000

 

1,029

 

USX Corp./Consolidated

 

 

 

 

 

6.85%, due 03/01/2008

 

1,000

 

1,063

 

Valero Energy Corp.

 

 

 

 

 

7.50%, due 04/15/2032

 

1,500

 

1,851

 

Primary Metal Industries (1.4%)

 

 

 

 

 

Phelps Dodge Corp.

 

 

 

 

 

8.75%, due 06/01/2011

 

1,725

 

2,086

 

Radio & Television Broadcasting (0.9%)

 

 

 

 

 

Chancellor Media Corp.

 

 

 

 

 

8.00%, due 11/01/2008

 

1,250

 

1,344

 

Railroads (0.7%)

 

 

 

 

 

Burlington Northern Santa Fe

 

 

 

 

 

9.25%, due 10/01/2006

 

1,000

 

1,061

 

Residential Building Construction (1.4%)

 

 

 

 

 

Ryland Group, Inc.

 

 

 

 

 

9.75%, due 09/01/2010

 

1,996

 

2,144

 

Security & Commodity Brokers (1.1%)

 

 

 

 

 

E*Trade Financial Corp.

 

 

 

 

 

8.00%, due 06/15/2011

 

1,500

 

1,579

 

Telecommunications (1.7%)

 

 

 

 

 

Sprint Capital Corp.

 

 

 

 

 

7.13%, due 01/30/2006

 

2,500

 

2,542

 

Transportation & Public Utilities (4.2%)

 

 

 

 

 

Magellan Midstream Partners, LP

 

 

 

 

 

6.45%, due 06/01/2014

 

3,300

 

3,605

 

Plains All American Pipeline Co.

 

 

 

 

 

5.63%, due 12/15/2013

 

2,500

 

2,589

 

Water Transportation (1.6%)

 

 

 

 

 

Royal Caribbean Cruises, Ltd.

 

 

 

 

 

8.75%, due 02/02/2011

 

2,000

 

2,305

 

 

 

3


 

Wholesale Trade Nondurable Goods (2.2%)

 

 

 

 

 

Domino’s, Inc.

 

 

 

 

 

8.25%, due 07/01/2011

 

$

1,094

 

$

1,165

 

Unilever Capital Corp.

 

 

 

 

 

6.88%, due 11/01/2005

 

2,000

 

2,020

 

Total Corporate Debt Securities (cost: $121,967)

 

 

 

126,958

 

 

 

 

Shares

 

Value

 

PREFERRED STOCKS (3.5%)

 

 

 

 

 

Telecommunications (3.5%)

 

 

 

 

 

Centaur Funding Corp. - 144A

 

3,750

 

5,099

 

Total Preferred Stocks (cost: $3,787)

 

 

 

5,099

 

 

 

 

Principal

 

Value

 

SECURITY LENDING COLLATERAL (3.8%)

 

 

 

 

 

Debt (3.2%)

 

 

 

 

 

Commercial Paper (1.2%)

 

 

 

 

 

Park Avenue Receivables Corp. - 144A

 

 

 

 

 

3.23%, due 07/20/2005

 

820

 

820

 

Ranger Funding Co LLC - 144A

 

 

 

 

 

3.26%, due 07/07/2005

 

1,000

 

1,000

 

Euro Dollar Overnight (0.3%)

 

 

 

 

 

National Australia Bank

 

 

 

 

 

3.38%, due 07/01/2005

 

449

 

449

 

Euro Dollar Terms (1.7%)

 

 

 

 

 

Nordea Bank Finland PLC (NY Branch)

 

 

 

 

 

3.17%, due 08/09/2005

 

500

 

500

 

Royal Bank of Scotland

 

 

 

 

 

3.31%, due 08/09/2005

 

1,000

 

1,000

 

Societe Generale

 

 

 

 

 

3.24%, due 08/09/2005

 

1,000

 

1,000

 

 

 

 

Shares

 

Value

 

Investment Companies (0.6%)

 

 

 

 

 

Money Market Funds (0.6%)

 

 

 

 

 

Barclays Global Investors Institutional Money Market Fund

 

 

 

 

 

1-day yield of 3.25%

 

824,490

 

824

 

Total Security Lending Collateral (cost: $5,593)

 

 

 

5,593

 

 

 

 

 

 

 

Total Investment Securities (cost: $143,869)

 

 

 

$

150,360

 

 

 

 

 

 

 

SUMMARY:

 

 

 

 

 

Investments, at value

 

102.0

%

$

150,360

 

Liabilities in excess of other assets

 

(2.0

)%

(2,955

)

Net assets

 

100.0

%

$

147,405

 

 

NOTES TO SCHEDULE OF INVESTMENTS:

(a)

 

At June 30, 2005, all or a portion of this security is on loan.  The value at June 30, 2005, of all securities on loan is $5,464.

 

4


 

(b)

 

Barclays Bank PLC has a fixed coupon rate of 6.278% until 12/15/2034, thereafter the coupon rate will reset quarterly at the 3-month US$ LIBOR + 155BP, if not called.

(c)

 

HSBC Capital Funding LP -144A has a fixed coupon rate 10.18% until 06/30/2030, thereafter the coupon rate will reset quarterly at the 3-month US$ LIBOR + 498BP, if not called.

(d)

 

Floating or variable rate note. Rate is listed as of June 30, 2005.

(e)

 

Husky Oil, Ltd. has a fixed coupon rate of 8.90% until 8/15/2008, thereafter the coupon rate will reset quarterly at the 3-month US$ LIBOR + 550BP, if not called.

 

DEFINITIONS:

144A

144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933.  These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers.  At June 30, 2005, these securities aggregated  $9,319 or 6.3% of the net assets of the Fund.

 

 

LIBOR

London Interbank Offer Rate

 

5


 

Item 2. Controls and Procedures.

 

(a)          Based on their evaluation of Registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940, as of June 30, 2005, Registrant’s principal executive officer and principal financial officer found Registrant’s disclosure controls and procedures to be appropriately designed to ensure that information required to be disclosed by Registrant in the reports that it files on Form N-Q (a) is accumulated and communicated to Registrant’s management, including its principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission.

 

(b)         There have been no significant changes in Registrant’s internal controls over financial reporting that occurred during the Registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

 

A certification for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the 1940 Act, is attached.

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

Transamerica Income Shares, Inc.

 

(Registrant)

 

 

 

 

By:

/s/ Brian C. Scott

 

 

 

Chief Executive Officer

 

 

Date: August 26, 2005

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

By:

/s/ Brian C. Scott

 

 

Chief Executive Officer

Date:

August 26, 2005

 

 

 

 

By:

/s/ Glenn E. Brightman

 

 

Principal Financial Officer

Date:

August 26, 2005